BHARAT PETROLEUM CORPORATION LIMITED EX EMPLOYEES ASSOCIATION Vs. BHARAT PETROLEUM CORPORATION LIMITED
LAWS(SC)-1990-11-79
SUPREME COURT OF INDIA (FROM: BOMBAY)
Decided on November 26,1990

BHARAT PETROLEUM CORPORATION LIMITED Appellant
VERSUS
BHARAT PETROLEUM CORPORATION LIMITED Respondents

JUDGEMENT

- (1.)T:- This petition for special leave arises out of the order dated 23-8-1990 of the High Court of Bombay made in C.A. No. 2635 of 1990 in Writ Petition No. 1568 of 1985. The matter before the High Court arose out of a request made by the appellants, who are about 235 former employees of the Bharat Petroleum Corporation Limited, (Corporation) for a clarification of the terms of the settlement dated 14-2-1989 entered into by them with the Corporation; in terms of which the W.P. No. 757/84 before the High Court came to be disposed of.
(2.)Pursuant to the settlement, a lump sum of Rs.'50,000/- became payable by the Corporation to each of the appellants in lieu and final settlement of certain disputes which culminated in an award respecting their claims for H.R.A., Gratuity, Duty-Allowances, interest etc. In respect of these payments, the Corporation made certain deductions of income-tax at source as enjoined by Section 192 of the Income-tax Act, 1961, on the premise that the payments constituted "Salary". In order to enable them to obtain appropriate and permissible refunds from the Income-tax Department, the appellants sought certificates from the Corporation indicating the break-down of this lump sum figure into its various components such as H.R.A., Gratuity, Duty-Allowance, interest, etc. The Corporation declined to do that on the ground that the sum so paid was, and intended to be, a lump sum payment and no break up was either intended or was possible. It would appear that owing, presumably, to the absence of such certification of the break down of the lump sum into its components the appellants found it difficult to obtain refunds of the tax deducted at source or of the appropriate and permissible portions thereof.
(3.)Thereupon the appellants moved the High Court for a clarification, of the High Court's order dated 14-2-1989. The High Court made an order in terms following:
"The Commissioner of Income-tax should proceed to finalise the assessments by accepting the mode of payment as prescribed in clause (e) of the minutes." It would appear that even this clarification did not enure to the benefit of the appellants. They, therefore, sought further clarification from the High Court by which they wanted an indication of the basis for a break down of the lump sum which the High Court declined to do. Appellants have come up here.

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